Court rules for bank over synagogue in loan dispute

Thursday

Jan 17, 2013 at 2:00 AM

Jessica DiNapoli

TOWN OF NEWBURGH - The Appellate Division of New York state’s courts last month ruled in favor of Empire State Bank in its battle with a Rockland County ultra-Orthodox synagogue.The court said the first $1 million Empire State loaned to Rolling Acres Chestnut Ridge, run by local developer Tovi Mermelstein, has priority over the synagogue’s loan. The loans were for a subdivision project in Rockland County that was never completed.The decision means that Empire State will get the first $1 million of the sale proceeds whenever the subdivision property is sold, said Jon Nelson, Empire State’s lawyer. The synagogue has not yet given any indication as to whether it will appeal, Nelson said.